Black Widow
Twitter has an enormous advantage over Facebook in one key area: while people on Facebook tend to friend their friends, people on Twitter tend to follow their interests. The social graph that makes up Twitter is worth far more on a per-account basis because it is directly monetizable in a way that Facebook’s generally isn’t – you can show prophylactic advertisements to Twitter users based solely on the people they follow, and probably get a much higher rate of interest. Compared to other social display ads, Twitter ads, it is rumored, work extremely well.
Outside of the direct value from its graph, Twitter is in an extremely unusual position for a social service. While it is ostensibly a sharing service, it is actually a broadcasting medium. People use Twitter more like they use TV; they follow accounts they are interested in, namely celebrities and companies, and then they consume the...